Yes, we can.

[Kevy Baby]

Originally Posted by Ghoulish Delight

Only goods with perfectly inelastic demand curves is this true.

I disagree. I think you would find that ultimately, almost all tax increases to corporations are passed on to the consumer.

And the funny thing about "Big Corporations" is that a good majority of the spoils goes to the common man. Most of the largest shareholders in large companies are mutual funds where you and I and other regular people have at least some of their retirement finds in. When Exxon/Mobile makes an "obscene" amount of money, that means that Joe Blow's pension just improved.

Also, Big Corporations typically employee a shytload of everyday people. Last I head, being employed is a good thing.

[Ghoulish Delight]

Originally Posted by Kevy Baby

I disagree. I think you would find that ultimately, almost all tax increases to corporations are passed on to the consumer.

Then you disagree with the generally accepted rules of economics.

reference

[Kevy Baby]

Originally Posted by Ghoulish Delight

Then you disagree with the generally accepted rules of economics.

Maybe so. I meant to add to my original post that the passing on may not be 1:1, but it will be significant.

Also, the passing on may not be direct either. Big Company A gets hit with a 10% increase in their taxes which results in a 2% overall increase in bottom line costs (I am using hypothetical numbers here). They may only be able to pass on 1% (half the additional burden) on to consumers. Then they extract another .5% from their vendors who must then tighten their belts in the form of layoffs or other such economic impact, another .25% in the form of internal layoffs, and the last .25% in the form of lower dividends to their institutional stockholders (read: your and my retirement funds).

There you have it: all 2% of the increased tax burden passed on to the consumer.